Thursday , October 21 2021

Minister of Energy: OPEC + offer brought Russia $ 120 billion



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Russia's budget has received another $ 120 billion since Moscow's cooperation agreement with OPEC two years ago, Russian Energy Minister Alexander Novak told the local newspaper Kommersant in an interview published on Tuesday.

Discussing earlier and earlier agreements between OPEC and non-OPEC partners led by Russia, Novak said that while the specific price of oil is not as important for Russian companies as it is for other countries, low oil prices create others Challenges of the State of Russia. A drop in oil prices could affect the U.S. ruble. The dollar's exchange rate and inflation rate, in addition to creating uncertainties about the economy and budget plans, Novak told Kommersant.

"In the two years that the OPEC + agreement is in place, Russia has also gained $ 120 billion, according to the lowest level of estimates," Novak said.

Therefore, it is important to evaluate the results of the agreement looking at the impact they have on Russia's economy as a whole, the Energy Minister said.

Speaking to Kommersant, Novak reiterated that Russia would gradually reduce its production level until it reached the 230,000 bpd slice of the cuts. Russia and its partners agreed that because of the technological and geological characteristics of the Russian oil industry, production can not and will not be cut by 230,000 bpd in January, Novak said, but noted that Russia will begin to reduce output as soon as possible. possible. next month.

Earlier in December Novak said Russia planned to reduce its oil output by 50,000 bpd to 60,000 bpd in January as part of OPEC's new agreement.

Asked how long the latest OPEC-OPEC deal would last, Novak told Kommersant that he could not make a specific forecast as partners would continue to assess the situation in the oil market.

However, it is "important to understand that cooperation will continue in one form or another," Novak said, noting that the cut-off agreement has been effective.

By Tsvetana Paraskova for Oilprice.com

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